Comittee proposes to move location of Tanjung Jati A power plant

The government has proposed to move the location of the Tanjung Jati A coal-fired power plant to lower the construction cost.

Yogo Pratomo, the head of the committee formed by the government to speed up the development of 10,000 MW power projects, said in Jakarta last week that the location needed to be relocated because the construction cost of the power plant would be very expensive if it is built on a swamp area.

"We fears that the selling price of the power supply from Tanjung Jati A would reach above 4.5 U.S. cents if it is built on the site proposed by the developer," he said.

Regarding the power sale price, initially Bakrie Power, a member of the consortium that owns the project, proposed 5.7 U.S. cents per kWh. In the renegotiation, Bakrie offered its revised power sale price at 4.8 cents per kWh and the final revised price it offered was 4.5 cents per kWh.

Earlier, PLN?s director for power and primary energy Ali Herman Ibrahim said that the power sale price offered by the consortium should be lower than 4.5 cents per kWh.

According to the initial plan, the coal-fired Tanjung Jati A will be built near the Tanjung Jati B power plant in Jepara, Central Java. The Tanjung Jati A consortium later proposed to move the location of the project "somewhere in the northern coast of Java"

Meanwhile for the Cirebon power plant, Yogo said that the coal-fired power project is ready for construction. He said that his committee and the developer were currently finalizing the technical aspect of the project.

In May, last year, a consortium led by Japanese firm Marubeni has won the tender to build the 600 megawatt (MW) coal-fired power plant. This consortium has offered a price of 43.63 cents per kilowatt-hour (kWh). (godang)